Structure Therapeutics Obesity Candidate Is 'Very Competitive' To Eli Lilly's Orforglipron, Analyst Says

On Monday, Structure Therapeutics Inc. GPCR revealed 12-week topline obesity data from its Phase 2a study of GSBR-1290.

In the Phase 2a obesity study, GSBR-1290 demonstrated a clinically meaningful and statistically significant placebo-adjusted mean decrease in weight of 6.2% at 12 weeks.

Cantor Fitzgerald maintains its bullish views on Structure Therapeutics and keeps the Overweight rating with a price target of $65.

The analyst says, “now have more conviction that ‘1290 is very competitive with Eli Lilly And Co’s LLY orforglipron on efficacy and data from PK formulation trial results support our view that tolerability (nausea/vomiting) rate will come down significantly in P2B without impacting weight loss.”

Also Read: Citi Monitors Competitive Threats To Eli Lilly, Says It Is Positioned To Maintain Leadership And Expand.

Answering questions regarding high gastrointestinal (GI) events, Cantor analyst said that the study had a more rapid titration schedule than other obesity trials, with forced rapid titration as ‘1290 had only 12 weeks of toxicity coverage when the trial was initiated.

Cantor highlighted that when Eli Lilly’s orforglipron was tested in P1 (type 2 diabetes) with a rapid titration, higher doses (45 mg) also had very high rates of nausea (80%), vomiting (55%) that got better in P2B and ‘1290 tolerability with the rapid titration is more in line with orforglipron.

Cantor added that Most of these events were already reported in the December 2023 interim update, and today’s update confirms the consistency of GI events.

Slowing the titration schedule should reduce these GI rates without compromising long-term efficacy. Additionally, the PK formulation trial offers strong supporting evidence.

Cantor analyst says, “Stock significantly undervaluing GPCR’s attractive pipeline of obesity candidates, in our view.

Price Action: GPCR shares were trading higher by 78.4% to $61 at the last check on Monday.